Common Offshore Accounting Challenges that Intelligent Outsourcing has Overcome Through the Years
We have talked a lot about the significant benefits of hiring an offshore accounting team such as cost savings and access to a global talent pool. Offshore accounting also helps improve efficiency among the team members therefore increasing productivity and having better output.
However, it also has its own set of challenges that impacts the operations if not managed effectively. While challenges are part of any company, Intelligent Outsourcing managed to turn the tables and champion against these challenges.
Let’s look at these common challenges and how Intelligent Outsourcing overcame them.
Communication Barriers
Challenge: Will I be able to communicate with my offshore team? Do they speak my language?
Language nuances can cause misunderstanding. Most often, the difficulty for offshore accounting partners is in expressing their thoughts in words. Accents could play a role in miscommunication with some clients.
Solution: Intelligent Outsourcing ensures that Offshore Accountancy team members’ communication skills are as good as (or better!) than their talents with accounting and bookkeeping. Being part of iO means being confident in speaking with partners overseas in the preferred language. All iO team members have passed language tests – and the language of our offices is English, with both partners and other team members.
Time Zone Differences
Challenge: Will my team be awake when I am? Will they answer the phone when I need them too?
Work coordination across different time zones can lead to delays and reduced productivity. Offshore teams usually start their work late in the evening until the morning to keep up with the schedule of the onshore team. This can result in team members getting tired and sleepy while working.
Solution: Intelligent Outsourcing established overlapping work hours for the offshore accounting teams and use project management tools to keep track of tasks and deadlines. One huge benefit is that all tasks are done overnight and are submitted to the partners before the day starts. Also, iO schedules regular meetings which helps ensure everyone in the team is on the same page.
Issues on Quality Control
Challenge: Can the offshore accounting team keep up with the standard implemented in my country?
Each country has its own accounting standards. The differences in accounting standards and expectations in work quality can lead to inaccuracies and inconsistencies in work.
Solution: Intelligent Outsourcing has in-house training and development center which a new team member must complete and pass before being handed over to a client. iO has a detailed Standard Operating Procedures (SOPs), conducts regular training sessions, and sets clear Key Performance Indicators (KPIs) to monitor performance.
Data Security and Compliance Risks
Challenge: Data and security threats are everywhere; how can an offshore accounting team counter these threats?
Data security and compliance are very critical and sometimes make or break the decision of a client to hire an offshore team.
Solution: Intelligent Outsourcing has robust security measures, including encryption and regular security audits. Compliance training is regularly done to ensure that the team members’ knowledge about security threat is up-to-date. iO adheres to international data security standards like GDPR and SOC2.
Legal and Regulatory Challenges
Challenge: How can iO assure that its team members and the whole company are familiar with the legal and regulatory requirements of my country?
Varying tax laws have different jurisdictions. Financial regulations and compliance requirements differ from one region to another.
Solution: This is Intelligent Outsourcing’s bread and butter – we have extensive experience working with legal and compliance experts across various national regulatory environments to ensure adherence to local and international regulations.
System Integration
Challenge: How adaptable is an offshore accounting team when it comes to our systems and procedures?
Offshore accounting teams could struggle to seamlessly integrate with existing accounting software and the workflows of their partner client.
Solution: Intelligent Outsourcing has team members with long experience in using industry-standard accounting software such as Xero, QuickBooks, or NetSuite. As a reputable offshore accounting team, iO conducts thorough onboarding and provides access to necessary tools and rigorous training.
Employee Retention and Turnover
Challenge: The accounting and bookkeeping industry is a very competitive business, how can iO ensure that the team members stay for a long time?
Retaining high-caliber and talented accountants can be challenging for any offshore accounting team. Some accountants will only last for a couple of years of ‘experience’ before jumping to a different client.
Solution: iO fosters a strong company culture by engaging the team members through sports and recreation, team buildings, offering competitive salaries, and providing career growth opportunities which Intelligent Outsourcing does on a regular basis. Rewards and recognition highly boost the team members’ morale so it should be done regularly.
While offshore accounting presents several challenges, these can be effectively managed with the right offshoring partner, strategies and tools. With Intelligent Outsourcing’s fostering of cultural exchange, investing in language training, coordinating across time zones, providing robust training, maintaining quality control, and ensuring cybersecurity, iO has long overcome these challenges and reap the benefits of what an offshore accounting team should be.
